Entrepreneurship – is a proactive process of developing a business venture to make a profit.

- It involves seeking opportunities for a market, establishing, and operating a business out of
the opportunity, and assessing its risks and rewards through close monitoring of the
operations.

Creating a sound business plan, along with efficient and effective operation of the business, will not only benefit the
entrepreneur but also the entire society and the economy.

An entrepreneur is successful if the business that he or she envisioned has materialized into a thriving industry with
regular customers and financial gain. He or she either decides to maintain or expand his or her business.

Societal benefits of entrepreneurship:

1. Entrepreneurship produces more jobs that equate to an increase in national income. Small businesses produce
jobs and create wealth.

2. Entrepreneurship amplifies economic activities of different sectors of society. Regardless of how small or big a
business, it will ignite economic activity.

3. Entrepreneurship introduces new and innovative products and services. New products and services are available
because of the ingenuity of entrepreneurs to seek opportunities and improve on them.

4. Entrepreneurship improves people’s living standards. A sari-sari store provides people near accessible goods.

5. Entrepreneurship disperses the economic power and creates equality. It balances the economy by distributing
national income to more businesses.

6. Entrepreneurship controls the local wealth and balances regional development. Makes sure that local resources
are used properly and that every area has appropriate allocation of resources.

7. Entrepreneurship reduces social conflicts and political unrest. Few sari-sari store produces people fighting for
food.

8. Entrepreneurship elicits economic independence and capital formation. A country with more entrepreneurs is
highly likely to become financially independent. Entrepreneurship creates wealth instead of borrowing wealth.

Who is an Entrepreneur?

“Entrepreneur has a French origin and was coined from the words entre, which means “between,” and prendre,
which means “to take.”

An entrepreneur is a unique individual who has the innate ability and extraordinary dedication to establish and
manage a business, acknowledging all the risks and reaping its rewards.

It entails a holistic business talent to be considered one, ranging from product and marketing
expertise to operations agility, and to financial proficiency.

Leadership is the core of every entrepreneur. He or she innovates, executes his or her big ideas,
and rarely procrastinates.

Five levels of entrepreneurial development:

1. The self-employed. While they can be self-sufficient, their tendency is to become too reliant on themselves, which
leads to exhaustions. They will eventually realize that a successful business should work for them, not the other way
around. If they realize this, they can move on to the next level.

2. The manager. They delegate and hire potential employees to do the work. Entrepreneurs will start knowing their
employees better, assessing their strengths and their areas for improvement. They will begin to create positions to
match the requirements of the business and the employees’ expertise.

3. The leader. Entrepreneurs in this level already enjoy seeing their people flourish, stepping up and producing great
results with minimal supervision. Entrepreneurs at this stage now focus on the big picture and strategic direction of
their business rather than in generating sales and operating the business.
4. The investor. Investors look for more opportunities for their business to grow. They may either purchase one or
two businesses that can potentially add value to the company, or sell their established business (as a franchise) to
potential entrepreneurs.

5. The true entrepreneur. Now aim for quality and excellence in their work. Fully learn and continue to practice, a
four-step process of thinking— idealization, visualization, verbalization, and materialization.

Idealization. Entrepreneurs dream enormously and desire an ideal environment.

Visualization. Entrepreneurs start to create plans to make the dream a reality.

Verbalization. Sharing their ideas with other people, knowing that their vision is already occurring.

Materialization. Happens when the vision becomes a reality.

Entrepreneur’s field of expertise:

1. A technopreneur is an entrepreneur who puts technology at the core of his or her business model.

2. A social entrepreneur who takes advantage of the country’s social problems and turn them to profitable
institutions with the intention of helping the disadvantage community rather than making a profit.

3. An intrapreneur is an entrepreneur in a large company or corporation who is tasked to think, establish, and run a
new big idea or project.

4. An extrapreneur is an entrepreneur who hops from one company to another to act as the innovation champion,
providing creative and efficient solutions.

Here are the common traits that entrepreneurs should always have:

1. Proactive. They address issues, problems, and challenges before they come rather than when they already
happened.

2. Agents of Change. They are always enthused to improve and develop new products and services and introduce
them to the market.

3. Risk takers. By taking risks, entrepreneurs do not just grab opportunities left and right; they have to take into
consideration the potential various threats they may encounter. Entrepreneurs calculate risks.

4. Have a sharp eye for opportunities. They know how to assess the net cause and effect of an opportunity and
decide intelligently if a venture should be considered or not.

5. Sociable. Relationship management is the key for employee and customer retention, which can be achieved by a
sociable entrepreneur.

6. Networkers. A networker knows the key people to connect with.

7. Decisive. They make sure that all aspects of their business have clear objectives and strategies. They base their
decisions on scientific calculations backed up by their experience and technical knowledge.

8. Balanced. The minds of entrepreneurs should have a balance between the analytical and the creative side.

9. Innovative. They do not stop improving and thinking of new and worthwhile ideas for business.

Here are the core traits that entrepreneurs should develop in managing and running the business.

1. Leaders. They must be the source of inspiration for their employees. They must be very humble, approachable,
friendly, and also know how to listen to people’s concerns.

2. Communicators. Entrepreneurs know how to use all forms of communication to effectively share ideas and
address certain concerns with their customers or employees.

3. Specialists. When asked about the specifics of their product or service, they can easily answer without heavily
relying on their people. They understand the totality and specificity of their business.
4. Problem solvers. Entrepreneurs possess critical thinking skills and look at problems as challenges or puzzles that
they need to solve. They know how to handle issues in any area of the business, be it finance, operations, or
marketing.

Table 1.1 Pros and cons of entrepreneurship vs. employment

Important Career Factors Entrepreneur Employee

1. Income -Income generated passively even -Income generated actively (i.e., on
when the entrepreneur is resting working hours only); no work = no
-Opportunity income unlimited, pay
depending on the success of the -Income usually fixed per month
business and increases every year depending
-Income only earned when the on the employer and the
business is successful employee's performance
-Income earned whether the
business is successful or
unsuccessful
2. Hiring and Firing, Organizational -Provides jobs; is the owner of the -Seeks for a job; is the one applying
Setup, and Major Key Results Areas business and conducts the talent for a job and is interviewed by the
selection company's hiring officers
-Fully responsible for serving -Has the goal of satisfying only the
customers, making the business employer or the direct supervisor
profitable/sustainable, and -Fully dependent on the employer's
providing employee satisfaction. performance; is at risk of losing his
-Has the power to disengage or her job if the company does not
nonperforming employees applying perform well; may find it difficult to
the due process policy of just leave their below par employer
disengaging personnel if this is their only source of income
-Can venture into expansion of -Can only work for the current
business such as franchising and employer exclusively
buying other similar businesses
3. Daily Tasks -Performs all necessary variable -Has routine tasks and works on
tasks to establish and manage a regular or normal hours
startup business, which usually -Follows policies, procedures, and
takes most of the entrepreneur's memoranda from the employer
time; spend more hours on work
than a regular employee and
sometimes gets no sleep
-Prepares policies, procedures, and
memoranda for the business
4. Leisure Time and Vacations -Has a flexible schedule and can -Has a limited number of vacation
take unlimited number of vacation days imposed by the employer
days (applicable only if the business
has stabilized already)
5. Taxation -Taxed on the net income; can claim -Taxed on the gross income; cannot
taxable income deductions for use expenses incurred related to the
allowable expenses incurred by the job such as food and transportation
business expenses to claim for deductions
from taxable income
6. Comfort Level at Work -Is comfortable in doing multiple -May be comfortable with routines
and challenging tasks and takes and minimal risks; may also be
accountability with the risks and comfortable in working for the
profits of the business; does not company itself
want to be confined in a box; thinks
outside the box or sometimes thinks
there is no box
List of the most common small businesses in the Philippines.

1. Sari-sari Store. Approximately one million sari-sari stores in the Philippines. Is one of the easiest businesses to set
up due to the minimal capital required and because it can be managed at home, where the business owner lives.

2. Rice retailing. Filipinos spend 20% or 20 centavos per every peso for rice. An average Filipino consumed an
average of 92 kilograms (kg) or rice from the 1980s to 1990s, 111 kg from 2008 to 2009, and 119 kg from 2009 to
2010.

3. Food cart business. They are usually located inside or outside the malls, schools, parks, trains stations, and offices.
Popular food items sold in food carts are dumplings (siomai), boiled fertilized eggs and quail eggs deep fried in batter
(tokneneng and kwek-kwek), fish balls and squid balls, burgers, fried noodles, shawarma, hotdogs, sandwiches, pizza,
donuts, and pastries. Popular beverages: sago’t gulaman (tapioca pearls and jelly), soft drinks, mineral water, milk
tea, coconut juice, and other juices.

4. Print business. Usually situated near schools and offices, printing businesses cater to the needs of students for
their projects and also to offices for their advertising and business requirements (flyers, billboards, magazines,
newspapers, journals, and calendars). It also caters weddings, anniversaries, birthdays, funerals, and graduations.

5. Buy-and-sell business. The influx of buy-and-sell web sites has changed the behavior of how Filipinos exchange
goods in the most efficient and practical way.

6. Street food business. Street food business are literally located in streets, selling almost the same food products
being sold by the food cart business. Some unusually popular street foods are isaw (chicken intestines), betamax
(chicken blood), and adidas (chicken feet), and the famous ballot (developing duck embryo).

7. Flea market business of tiangge. Entrepreneurs set up a small space and sell any type of goods in a palengke
setup that is normally in an open space.

8. Online selling business. Involves the internet. Similar to buy-and-sell but selling existing and established products
is done online.

9. Cellphone loading business. More than 95% of Filipinos are prepaid mobile phone users. 80% of Filipino
households have access to mobile phones. Some entrepreneurs link the cellphone loading business to their existing
businesses such as the sari-sari store, food cart, or online business.

10. Laundry and dry cleaning business. Located at central business districts and areas with several condominiums
and townhouses. This business also have a significant presence near schools, dormitories, and apartments.

11. Hair styling and makeup business. One of the successful businesses. Includes parlors and barber shop. Offers
auxiliary services such as hair treatments (perm, straightening, highlighting) massage, and nail styling.

12. Spa, gym, and nail care business. One of the ways Filipinos cope with stress is by going to a spa. Filipinos also go
to the gym because more Filipino are becoming health-conscious. Nail care is very much enjoyed by Filipino women
who avail of a manicure, pedicure, or both.

13. Video and Photography business. This business requires talent in capturing precious moments of celebrators in
weddings, birthdays, anniversaries, graduations, and other important events.

14. Tutorial business. Is composed of experts in a particular field who transfer their knowledge to another for a fee.

15. Baking business. A lot of bakeries are present in almost all neighborhoods in the Philippines because bread is the
second staple food of Filipinos. Pan de sal is the most common bread.

16. Web site development and design/blogging. The web site developer conceptualizes and implements a web site
for another business whose objective is to inform, persuade, and remind its costumers. Some people may earn cash
by allowing companies to pace ads on their blog.

17. Direct selling business. Face-to-face selling of products by a sales agent. The products include fashion
accessories, health and wellness items, clothing, food supplements, and homecare items.
18. Car wash and care care business. You see this business in large cities because of the proliferation of cars.
Demand for car care increases every year.

19. Bar, café, and restaurant. The number of foodies (food enthusiasts) has increased because the Filipino palate
became globalized.

20. Water station and LPG (liquified petroleum gas) station. These businesses can never go wrong as they
continuously serve households, supplying them with their purified water and gas needs. The products that they sell
are used for daily consumption.

Once the business is established, the business owner, the entrepreneur, can choose to expand and explore
franchising, intrapreneurship (managing a startup business in an established business), and acquisition (buying
another similar business or a new business). Franchising is a business arrangement wherein the franchisor, who is
the owner of the business, acquires distribution centers through the franchisees or the affiliated dealers.